It's interesting to imagine their reactions when foreign governments intervene to block American companies acquiring their native companies.
Eg. the Dutch government blocking Qualcomm's takeover of NXP. (EU stalling the acquisition to investigate antitrust issues is different.)
Hate these type of moves.
How have you established that this is the most likely outcome?
1. There's too much damn consolidation going on, and any barrier to more is good, IMHO. Preventing consolidation is pro-competitive, and I support that.
2. While this decision isn't directly about China, that country has long been pretty egregious in blocking acquisition of its domestic companies (IIRC, a 50-50 partnership is the best you're permitted as a foreigner). It makes no sense to be open to acquisitions by countries who aren't willing to extend the same rights to you.
3. National security is a thing that shouldn't be sacrificed for high-roller business deals. I'm all for preserving American capabilities in these areas for that reason.
4. I don't really give AF about any American corporate whining about acquisitions getting blocked and other stuff like that.
As for your question, my understanding is a Broadcom acquisition of Qualcomm would change the market such that Chinese competitors would be able to force themselves deeper into the American market. So it's more about the second-order effects of the deal rather than the first-order ones.
Even a broken clock (current WH admin) is still right twice a day.